Opportunities for Vietnam-India Cooperation in Pharmacy

2:14:27 PM | 4/6/2023

Vietnam Chamber of Commerce and Industry, Ho Chi Minh City Branch (VCCI - HCM) in coordination with the Consulate General of India in Ho Chi Minh City, recently co-organized a seminar “India’s potential – Opportunities for Investment in Pharmaceutical sector”, aiming at creating a platform for Vietnam’s businesses to gain knowledge about the potential of India in pharmaceuticals and opportunities for Vietnamese investors to invest in India in the pharmaceutical sector.

Speaking at the event, Mr. Madan Mohan Sethi, Consul General of India, said that India has a relatively early pharmaceutical industry with strong development on a global scale. This achievement was driven by the Indian Government’s efforts to boost domestic manufacturing of medicines, as the country faced many economic difficulties after gaining independence in 1947. At that time, medicine and healthcare access was a difficult and urgent challenge for India’s government. However, overcoming all barriers, up to now, the Indian pharmaceutical industry has risen to the third position in the world in terms of pharmaceutical output. India is known as “the world’s medicine factory” and the largest supplier of generic medicines in the world, supplying over 50% of global vaccine demand, 40% of generic drug demand in the U.S. and 25% of all medicines in the UK. Currently, over 80% of the antiretroviral medicines used globally to combat AIDS (acquired immune deficiency syndrome) are supplied by Indian pharmaceutical firms.

Consul General Madan Mohan Sethi added that Vietnam is an attractive market for Indian businesses. Since the beginning of 2023, about 30-40 Indian businesses have visited Ho Chi Minh City to look for investment opportunities. Vietnam and India have much potential for successful cooperation in such fields as pharmaceuticals, electronics, and food and car parts production. This is also a solid foundation and a great prospect for the two countries to promote extensive cooperation in the coming period, contributing to further improving the bilateral balance of trade. In particular, there is huge potential for cooperation between Vietnam and India in the pharmaceutical sector.

The leading pharmaceutical companies of India all meet the international standards in the U.S., European Union (EU), and Australia. Meanwhile, the Vietnamese and Indian business communities both wish to explore opportunities in pharmaceutical production and distribution. “In the coming time, businesses of the two countries can diversify cooperation in the pharmaceutical supply chain, thereby creating a solid foundation to promote the trade and investment cooperation between the two countries,” Mr. Madan Mohan Sethi recommended.

At the event, Ms. Yashika Khurana, Assistant Vice President of the National Investment Promotion and Facilitation Agency of India (Team ASEAN), introduced the development of modern India in general, as well as the development of the Indian pharmaceutical industry in particular, especially investment opportunities in the pharmaceutical sector. Ms. Yashika Khurana said that FDI flows into India have consecutively reached new record levels for eight years, with an annual growth rate of 85%. With the policy of “Rolling out the red carpet to welcome investors”, India invested in building a world-class infrastructure system of 4,000 industrial parks, with production value reaching US$30 billion in 14 major industries, to serve exports. This is also a great advantage for cooperation between Vietnam and India in the pharmaceutical sector in the coming time.

Emphasizing that so far no Vietnamese enterprises have invested in the pharmaceutical sector in India, Mr. Himanshu Agrawal, Assistant Vice President of the National Investment Promotion and Facilitation Agency of India (Pharmaceutical Team), highlighted the country’s potential pharmaceutical market to Vietnamese investors. “Developing joint venture cooperation between the businesses of the two countries in the pharmaceutical sector will help transfer modern technologies in manufacturing and promoting pharmaceutical exports in the region and worldwide,” Mr. Himanshu Agrawal confirmed.

By My Chau, Vietnam Business Forum